After multiple rounds of discussions between the workers and senior management of Samsung India, a settlement has been reached concerning the ongoing strike at the company’s plant in Sriperumbudur, near Chennai.
However, the Centre of Indian Trade Unions (CITU) after the meeting said that the strike would continue, as their key demand, recognition of the newly formed union Samsung India Workers’ Union (SIWU), was not accepted.
“The strike will continue until the union is recognised,” E. Muthukumar, Kancheepuram district secretary, Centre of Indian Trade Unions (CITU), said. “The agreement was signed with the workers committee so we will strike until our demands are met,” he noted.
The meeting took place at the Secretariat and lasted over seven hours on Monday, in the presence of Labour Minister C.V. Ganesan, Industries Minister T.R.B. Rajaa, and MSME Minister T.M. Anbarasan.
Government sources said that a Memorandum of Agreement (MoA) was signed between the company and the workmen committee. According to the MoA, the company shall, in consultation with the committee, implement measures to enhance the competitiveness of wages.
As an immediate measure and recognition of the current financial situation, the company will provide an interim special incentive, ‘Productivity Stabilisation Incentive’, equivalent to ₹5,000 per month. It will be effective from October 2024 to March 2025.
The modalities of the payment will be finalised in consultation with the workmen committee. This special incentive shall be considered with the annual increment in wages for the financial year 2025-2026, that will be finalised in consultation with the workmen committee during the wage negotiations.
Mr. Rajaa, on X (formerly Twitter), said: “After several marathon meetings between the three-member ministerial team and various stakeholders, Samsung’s management has agreed to key demands raised by their employees, including a significant wage hike and additional benefits while also agreeing to consider some other demands once the rest of the employees return to work.”
“We hope that the strike is called off soon and that all employees return to work and continue contributing towards our journey of making Tamil Nadu a Trillion Dollar Economy,” he added.
Samsung India spokesperson said: “Samsung India today signed a Memorandum of Agreement with the workmen committee of its Chennai factory. Both parties agreed on collaborative efforts to make the Chennai factory a great place to work. We will engage with workmen directly to address the difficulties faced by them. We will also work with them for the development of the community in Chennai as a responsible company.”
“We are cognisant of the Tamil Nadu government’s efforts to end the illegal strike and are thankful to the authorities for their constant support. We reiterate that we comply with all laws and regulations of the country,” the spokesperson added.
Hundreds of workers at Samsung India’s manufacturing facility in Sriperumbudur went on a strike from September 9, 2024 demanding recognition of the newly formed Samsung India Workers’ Union, and an increase in wages. Of the 1,800 workers at Samsung Electronics’ facility in Sriperumbudur, 1,000 joined the protest. The company said that this did not have any impact on the production at the plant.
Established in 2007, the Sriperumbudur facility is one of Samsung’s two factories in India, with the other located in Noida. The Tamil Nadu plant manufactures consumer products, including televisions, washing machines, and air conditioners.
Published – October 08, 2024 12:57 am IST
